Colleges & Universities

The 3,000 colleges and universities in the US provide post-secondary education and award degrees to students who have developed expertise in a specific field of study. Colleges and universities include public, private non-profit, and for-profit institutions.

Tuition Increases Jeopardize Affordability

College tuition continues to grow faster than inflation and family income, making higher education less affordable.

Volatility in Government Funding

During tough economic times, state and local governments typically reduce budgets and may cut support for higher education, forcing schools to rely on tuition increases or other sources to fund the shortfall.

Sep 10, 2026 - Colleges Cut Full-time Staff, Total Faculty Count Increases

• Full-time staff employment at US colleges decreased 6.6% year over year in 2025, according to the College and University Professional Association for Human Resources. The decrease was even sharper among part-time staff at 23.9%. Total faculty numbers increased during the year, however. Tenure-track faculty headcounts saw the largest increase at 7% year over year, the biggest increase for that group since at least 2016.
• The US Department of Education unveiled in July an extensive regulatory agenda that includes a proposed rule on accreditation that would make it easier for new accrediting bodies to form and for colleges to change accreditors. The rule would also expand accreditor duties to include oversight of campus policies related to free speech and intellectual diversity. The department also expects to amend regulations to "streamline the process" for cutting off federal financial aid to colleges that it determines violated civil rights laws and refused to voluntarily come into compliance.
• Tenure agreements are becoming difficult to maintain for schools struggling with financial and political pressures, according to The Boston Globe. It’s still uncommon for universities to strip tenure from professors entirely but fewer tenured faculty can rely on the financial stability the status once ensured in uncertain times. Tenure has been under threat since at least the 1970s, when three-fourths of university professors nationwide either had it or were on track to receive it, according to The Boston Globe. Less than 35% of US faculty positions are tenured or tenure-track in 2026, according to the American Association of University Professors, and those jobs are fiercely competitive.
• College and university industry employment has rebounded and was near pre-pandemic levels in late 2026, according to the US Bureau of Labor Statistics. College and university industry revenue is forecast to grow at a 2.86% compounded annual rate from 2026 to 2030, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Sources of revenue include tuition and fees; federal, state and local government funding; auxiliary enterprises (dorms, bookstores); endowment income; investment return, gifts and grants; and contracts.

Industry size & Structure

A typical four-year college employs about 680 workers and generates $231 million annually. A typical junior or community college employs about 119 workers and generates $43 million annually.

• The US has 3,000 colleges and universities which employ over 1,750,000 workers and generate about $665 billion annually.
• Colleges and universities include public, private nonprofit, and for-profit institutions.
• While enrollment can vary significantly, public colleges average about 8,900 students while private colleges average about 2,100 students. Large institutions have enrollments of 40,000 students or more.
• Institutions with the largest enrollments include The University of Phoenix's Online Campus, Arizona State University, Ohio State University, and the University of Central Florida.